One of the ways in which local governments can raise money in the capital markets for the purposes of building, modernizing or extend-ing roads, bridges, schools, hospitals and expansion of sports and recreational centers, manufacturing or heat production capacities or improving water supply, is the issuance of municipal bonds. Funding these projects by issuing municipal bonds can be provided under more favourable conditions then in a case of debt financing through banks.Researching problem is being defined as finding an answer to the question whether a debt securities issue can be used in a function of local community development. The subject of this research paper is the analysis of previous emissions of municipal bonds in the Republic of Srpska, where case study method was applied. The aim of this research is to determine the possibilities of using debt securities emis-sions with the purpose of local communities development in the Republic of Srpska, through detailed analysis of the above mentioned emissions, as well as the experiences of other countries. By empirical research conducted in 2017, we came to the conclusion that the emission of municipal bonds can be used as an efficient instrument for local governments in financing development and sustainability projects.